How Index Funds Changed Investing Forever

When John Bogle launched the first index fund in 1976, Wall Street laughed. By 2024, passive funds managed over 15 trillion globally, more than active funds. The shift to passive investing transformed markets, concentrating voting power in index providers like S&P and MSCI.

Critics warn that passive investing reduces market efficiency and corporate accountability. Supporters argue it gives ordinary investors fair returns at minimal cost. The index fund revolution is the most significant financial innovation since the joint stock company.

Bogle proved that low costs beat stock picking over time..